1. What are the four terms of the discounted cash flow (DCF) model?
2. Differentiate between the income and cash flows.
3. Why does the DCF model focus on cash flows and not income?
4. Define Risk. What term in the DCF model reflects risk?
5. Provide several examples of real estate assets that involve risk. Explain the sound of the risk.
6. Define leverage. Explain how leverage can be used to increase the value of equality in a real estate investment.
7. Discuss the concept of optimal capital structure as it pertains to real estate investments.
8. Define options and give several examples of options in real estate.
9. List three services provided by financial intermediaries.
10. Explain how financial intermediaries can be exposed to interest rate risk.
- Summarize the historical use of property as collateral for a loan to finance its purchse.
- What is the major difference between the fudicia, the pigus, and the hypotheca in Roman Law?
- Define the equitable right of redemption. What is the origin of the equitable right of redemption?
- Explain why mortgage bankers were popular in the post- Civil War era.
- What were the characteristics of mortgages in the latter half of the nineteenth century? Explain why they minimized interest rate risj of the lender.
- Outline the cause of the high default on mortgages during 1930s depression.
- How did the federal program support the mortgage and housing market in the 1930s Depression?
- What is the purpose of the following agencies (a) FSLIC, (b) FHA, and (c) FNMA?
- Explain how the mortgage market of the 1940s differed from that of the 1920s.
- Discuss the major changes in residential finance market from 1950 to 1990s with regard to a. the types of mortgage lenders. b. the types of mortgage loans. c. the role of the federal government including legislation.